Sugar futures surged on Tuesday along with most of the complex in a modest rebound after the US downgrade. World stocks put the brakes on a 10-day rout as investors turned their attention to a US Federal Reserve meeting while gold clawed to fresh record highs as investors remained bruised by the sell-off.
After the market closed, the US Federal Reserve said Tuesday it will keep its hefty monetary policy stimulus for at least another two years to support the flagging economy and fragile global markets. Many commodity markets were viewed as oversold after Monday's complex-wide liquidation when investors fled risky assets.
Gentile said: "It's a world-wide mess and we're on this roller coaster. The problem's not solved and we'll get more panic liquidation in the markets." The key October raw sugar contract added 0.51 cent to finish at 27.49 cents per lb. Analyst Datagro in Brazil said the country's sugar output was forecast to fall to 31.85 million tonnes from 33.7 million tonnes expected previously.
Arabica coffee futures on ICE firmed, supported by commercial buying and tight supplies. Damage from a frost that swept over Brazil's south-eastern coffee belt last Friday was expected to have a small impact on next year's harvest, three co-operatives in the region said. The December arabica coffee contract gained 0.55 cent to close at $2.385 a lb.
US cocoa futures were dominated by September/December spreading, ahead of September's first notice day August 18. The market's next move, however, was uncertain despite its bearish near-term fundamentals. ICE Futures US December cocoa contract eased $2 to end at $2,943 a tonne.
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